13th Mar 2014 10:16
LONDON (Alliance News) - Eland Oil & Gas PLC Thursday said its Nigerian joint venture is set to get a significant reduction in its underlying tax rates after it made good progress in talks about its tax status with the relevant Nigerian government departments.
In a statement, Eland said it will provide further details when appropriate.
The company owns 45% of Elcrest Exploration and Production Nigeria Ltd. Starcrest Nigeria Energy Ltd owns the rest. The venture owns a 45% stake in the OML 40 license, onshore Nigeria, which has one oil field previously in production and five undeveloped fields.
In February, the company started oil production from the Opuama oil field on the license and said output from two wells on site were expected to stabilise at an aggregate of around 2,500 barrels of oil per day.
The crude oil produced from the site will be delivered to the Shell Forcados expert terminal via its recently recommissioned flowstation and export pipelines, with a capacity to export up to 30,000 barrels a day.
Eland shares were up 6.2% to 124.75 pence, putting it in the top AIM risers Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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